The US dollar is recording gains on Thursday following a better-than-expected initial Jobless Claims report. As the broader financial markets continue their lackluster performance, investors have been pouring into the conventional safe-haven asset to shield their capital from the losses. The buck has maintained its stellar 2021 performance amid economic uncertainty.
According to the Bureau of Labor Statistics (BLS), the number of Americans filing for unemployment benefits decreased by 97,000 to 684,000 in the week ending March 20. This is the first time that Jobless claims have fallen below 700,000 since the early days of the coronavirus pandemic. The median estimate suggested claims would come in at 735,000.
Continuing jobless claims fell to 3.87 million, while the four-week average, which removes week-to-week volatility, declined to 736,000.
An additional 241,745 applications were submitted for a temporary federal-relief program. Combined federal and state jobless claims totaled 898,534, the first time that they have slipped below one million since the beginning of the COVID-19 public health crisis.
Massachusetts, Nevada, and Virginia reported increases. Illinois, Ohio, and California recorded falling claims.
A new Department of Labor review discovered the there has been widespread fraud, particularly in the federal program, that led to $63 billion in improper payments. Officials say that because the federal program was extended to self-employed workers for the first time, it was easier for unscrupulous individuals to scam the system.
In other economic data, the gross domestic product (GDP) growth rate in the fourth quarter was revised upward to 4.3%, higher than the market forecast of 4.1%. The GDP price index was modified downward to 1.9% in the October-to-December period. Corporate profits in the final dropped 3.3% in the final quarter of 202.
On Friday, personal income and spending data will be released, with economists predicting -7.3% and -0.7%, respectively.
Financial markets have been combing through Federal Reserve Chair Jerome Powell‘s comments in his interview with NPR. He praised the economic recovery, adding that the US central would pullback assistance once “substantial” progress has been made.
As we make substantial further progress toward our goals, we’ll gradually roll back the amount of Treasurys and mortgage-backed securities we’ve bought. We will very gradually over time and with great transparency, when the economy has all but fully recovered, we will be pulling back the support that we provided during emergency times.
The bond market was mostly in the red on Thursday, with the benchmark 10-year Treasury yield down 0.021% to 1.593%. The one-year bill dipped 0.003% to 0.068%, while the 30-year bond shed 0.02% to 2.295%.
The US Dollar Index (DXY), which measures the buck against a basket of currencies, rose 0.11% to 92.63, from an opening of 92.53. The DXY has rallied 0.9% this week, bringing its year-to-date surge to 3%.
The USD/CAD currency pair slipped 0.01% to 1.2583, from an opening of 1.2581, at 13:41 GMT on Thursday. The EUR/USD edged up by 0.02% to 1.1817, from an opening of 1.1814.
© AndrewMoran for Forex News, 2021. |
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Post tags: Bonds, Dollar, DXY, EUR/USD, Federal Reserve, GDP, Jerome Powell, Jobless Claims, United States, US Dollar Index, USD/CAD
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